The underlying fund always pays. Besides I don't think there are loopholes with Mauritus and Singapore domiciled funds with direct exposure, any longer. If you are holding long term (1yr) index funds or listed shares, a 10% long term capital gains tax on profits generated isn't as bad as the US dividend tax of 30%. Considering the alpha you generate with good stocks, this is just the cost of doing business.
The underlying fund always pays. Besides I don't think there are loopholes with Mauritus and Singapore domiciled funds with direct exposure, any longer. If you are holding long term (1yr) index funds or listed shares, a 10% long term capital gains tax on profits generated isn't as bad as the US dividend tax of 30%. Considering the alpha you generate with good stocks, this is just the cost of doing business.