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Mark Mobius: Here’s the best global investment opportunity now

Investors should look to India for a prime opportunity within emerging markets, Franklin Templeton's Mark Mobius says.

Mobius told CNBC the emerging markets space as a whole is "going gangbusters." When asked for his best investment idea, he turned a specific type of company in a specific market.

"What's most exciting in India are the small- and medium-cap companies," Mobius told "Trading Nation" on Tuesday. "They've got thousands of companies listed, and these small and medium caps have not moved up as much as the large cap, so lots of excitement in that area."

Specifically, he noted India's economy is growing at a faster clip than China's, and he sees tax reform implemented under Prime Minister Narendra Modi as a positive for the market. And as the market sees more state-owned company shares flowing into the market, Mobius said this is a sign that "more reform" is coming.

India's Bombay Sensex index has gained 10 percent year to date after seeing a rocky end to 2016 following Modi's decision to remove large banknotes from circulation in order to fight counterfeit currency issues.

Elsewhere in emerging markets, Mobius is overwhelmingly positive on Brazil, Russia and China — part of the group widely referred to as "B.R.I.C" countries, of which India is a component — despite investors' fears of higher interest rates in the U.S. dragging down foreign equities.

"Sometimes interest rates go up and the markets go up. And this has been happening with emerging markets; emerging markets are going gangbusters," he said.

Some of Mobius's recent calls has served investors well. In October, he said investors should buy Chinese equities; the Shanghai composite is up nearly 4 percent since then. And in the wake of the U.S. election in November, Mobius foresaw opportunity in Mexican equities which indeed have come roaring back from their dramatic postelection slide.

A popular emerging markets exchange-traded fund, the EEM, has gained over 11 percent year to date.

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

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Brian Sullivan is co-anchor of CNBC's "Power Lunch" (M-F,1PM-3PM ET), one of the network's longest running programs, as well as the host of the daily investing program "Trading Nation." He is also a frequent guest on MSNBC's "Morning Joe" and other NBC properties.

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