NEW YORK ( TheStreet) -- India is experiencing a substantial turnaround from an investment perspective. So much so that Adam McCabe, portfolio manager for the Aberdeen Asia-Pacific Income Fund (FAX), places it in the "sweet spot" from an emerging market perspective.

"There is a real chance that the sovereign country risk premium, the inflation risk premium, can be broken particularly with the efforts of Narendra Modi and indeed Raghuram Rajan at the Central Bank," said McCabe. "Together they have every chance of being credible and successful at unlocking that value."

The Aberdeen Asia-Pacific Income closed end fund holds 32% of its assets in Australian fixed income as of the end of January 2015, 7% in South Korean bonds and 6% in Indian bonds. The fund has fallen 9.5% in price so far this year and traded at a 14% discount to its net asset value at last check.

Much of the volatility in the portfolio of late is due to worries about the slowing China's impact on the region's economy, especially on countries like Australia which supply China with the commodities to grow. While McCabe understands China's economic rebalancing is causing some problems in his portfolio, long-term he sees the benefits.

"China can no longer afford to grow at 10% to 12%, these breakneck speeds," said McCabe. "It needs to be very stable. And indeed what we are seeing is a transition of China away from one that is investment led to one that is more driven by consumption. That's positive for the world in the longer term."

And as for the concern that a dramatic drop in the super-hot Chinese stock market will create instability across the region, McCabe is also not overly concerned.

"The thing about China's domestic equity market as well as the bond market is that it is primarily owned by domestic investors and they can't really leave China," McCabe said. "The reality is that the People's Bank of China, the Central Bank, are really proactive in managing liquidity in the bond market. And that gives us some hope and some confidence that the bond market will remain well-supported, notwithstanding what happens in the equity market."

Finally, McCabe is not afraid that a series of rate hikes by the U.S. Federal Reserve will sink Asian economies because of the large pool of domestic savings in Asia.

"With that domestic savings comes the demand for duration, the demand for interest rate risk," said McCabe. "And really what we see is the dominance of domestic investors, and that is likely to remain come what may with the U.S. and the U.S. Federal Reserve."

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.

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