Many fear that emerging markets will be especially hard hit as the Federal Reserve reduces its quantitative easing (QE) program.

But Mark Mobius, executive chairman of Templeton Emerging Markets Group, believes the danger is highly exaggerated and emerging markets remain the place to invest.

Many investors are fretting that interest rates will spike and stocks will plunge as the Fed winds down its monthly bond purchases.

Editor’s Note: Forbes Columnist: ‘Who the Hell Cleared This?’ (See Shocking Video)

Mobius isn't one of them.

"I believe that this fear of tapering is quite overdone," Mobius told CNBC.

"What people fail to realize is that the so-called tapering is on top of an incredible increase in money supply in the U.S. These QE programs have been cumulative. It's not a situation where one stops and all that money goes away. It stays in the system," he stated.

Stocks in Asian countries fell substantially recently, but Mobius explained he remains bullish on emerging markets because more money will begin flowing into emerging markets. Although money has been flowing out of emerging market fixed-income funds, emerging market equity funds have been flat, he noted.

"So yes, money has flowed out of emerging markets, but it's been in the fixed-income area, not the equity area."

The Association of Southeast Asian Nations (ASEAN) free trade agreement, he predicted, will create a market as large as China, and stimulus in Japan will increase liquidity and help boost ASEAN countries.

India, on the other hand, doesn't look as good, he added. Its currency is falling, reaching new lows against the dollar. Stock values there are falling, and bureaucracy and barriers to investment pose difficulties.

He still invests in India but said the country is "not at the top of my list."

"If you look at the fundamentals for emerging markets, they still are very good."

A Fitch Ratings quarterly investor survey showed that European investors are worried about how tapering of the Fed's QE will affect liquidity for emerging markets.

Two-thirds of those surveyed expect concerns over timing of tapering to drive volatility in emerging market bond funds this year, and 21 percent said the flows into emerging market funds would decrease due to greater concerns over political risk.

Nearly two-thirds believe fundamental credit conditions for emerging market corporates will deteriorate, more than double the proportion in the last survey. The views on emerging market sovereign credit were equally bearish.

"We believe these concerns are likely to be focused on the most vulnerable sovereign and corporate credits and that widespread credit distress in emerging markets is unlikely," Fitch stated in a news release.

Editor’s Note: Forbes Columnist: ‘Who the Hell Cleared This?’ (See Shocking Video)