Changing Tax Rules: India's Big Mistake?

Talking about China, Mobius said the country is reflecting to be under pressure due to political scandal over ousted provincial political leader Bo Xilai but he added that it is not a big problem for equity investors.

Bo, former leader of China's municipality Chongqing, was dismissed in March after police began investigating his wife on doubting of murdering a former family friend, a British businessman, in a row over money. Mobius said, "This is well isolated in one province and I don't think this is a big problem.” The Asian Growth Fund had nearly 28 percent of its portfolio in China companies as at end-March, with PetroChina as its No. 1 holding. In concern to South Korea, Mobius said apprehensions about the ownership and governance structure at big, family-run corporations were dragging down share prices.

As admiring some companies for handing some of the power that the founding families held to newly created holding companies, he said, "They have to do much further than that to allow minority investors to have a greater say.” He further added, "Right now, the reason why Korean stocks tend to sell at a discount is because of this problem. That's the single most important factor." The flagship fund had 7.2 percent of its portfolio in South Korean companies, with SK Innovation Co Ltd among its top-10 holdings.

On Europe, the fund manager was optimistic about efforts that euro zone policymakers are making to avert a catastrophic collapse of the single-currency area, saying media reports and some harsh commentaries were overblown.