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Mongolia -- The New Hot Spot for Investments

Mongolia is the new hot spot for investment as it has the resources that China needs, said Mandar Jayawant, managing director at Frontier Investment Partners.

Mongolia: The New Hot Spot

"Mongolia is an extended China play," he said on CNBC's Asia Squawk Box. "The growth in Asia is going to drive the world economy...China is going to drive Asia, and China needs resources."

"You just have to look at a map and you're going to see where it'll come from. They're going to come from Mongolia," he noted.

"Mongolia has coal, copper, iron ore -- it has everything that China needs and they're ready to go into production. It has a business-friendly government that's just put its money where its mouth has been in the last decade or so, and we're ready to take off in Mongolia."

Jayawant said he sees this as a medium-to-long term play and it's a "very very attractive investment opportunity".

But investments in frontier markets come with high risks attached, with Mongolia's legal system yet to be tried.

"You are sort of going to be breaking the path going forward," Jayawant noted. "But we don't see too many political risks or policy risks or flip flops in that sense."