"Undoubtedly the situation in Greece is creating worry. And it is legitimately a source of concern, but I wouldn't nearly talk about runs on banks," he said.
Jain believes it is "in no-one's interest" for Greece to leave the euro but, if that were to happen, the main question would be how the devaluation would take place, whether it would be an uncontrolled or an orderly one.
"In the latter case, I could even imagine a non-disruptive way of moving on," he said. "Clearly, there is a tail risk event associated with a dramatic devaluation which frankly, we don't foresee."
The situation in Europe apart from Greece is "pretty encouraging," with Italy, Spain, Portugal and Ireland making "tremendous progress towards significant reform," according to Jain.
"So the real issue right now is exactly what the resolution to Greece would be. If we can get through that, and it's a big 'if', I actually think there is reason to be long-term optimistic about Europe. "
- Reported by Maria Bartiromo, Written by Antonia Oprita, CNBC.com
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