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