Gundlach said on Wednesday at the CNBC Institutional Investor Delivering Alpha Conference in New York that if the Fed increases interest rates prematurely, it will have to cut again. The money manager also said that high-yield bonds will be a “debacle” in three to four years, although they are a good investment bet in 2015.

“I’m willing to dance the risk dance near the door” and invest in junk bonds this year, Gundlach said.

Gundlach, who runs the runs the top-ranked $46.6 billion DoubleLine Total Return Bond Fund, said in May that the U.S. Federal Reserve may not be in the position to raise interest rates this year. Earlier this month, he put the chances of the Fed raising rates in September at below 25 percent.

The money manager reiterated that idea at the conference even as the Fed Chair Janet Yellen said Wednesday that prospects are good for further improvement in the labor market and the economy, keeping the central bank on track for an interest-rate increase in 2015.

Gundlach said he was bullish on emerging market bonds as well as Indian stocks, which he predicted are poised to soar over the next few decades on its growing labor force and favorable demographics.

“I’m really a ten on a scale of one-to-ten bullish on Indian equities for the next generation,” he said.

Gundlach’s DoubleLine Total Return Bond Fund beat 79 percent of peers by returning 1.1 percent this year, according to data compiled by Bloomberg. Over the past five years, the fund has beaten 99 percent of similarly managed funds. His Los Angeles-based firm oversaw $76 billion at the end of June.