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.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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