Top 10 Mutual funds with best railway stocks

Railway stocks have been a hot topic for discussion for quite some time now, and there are several clear reasons for this, including the privatization of railway stocks, government initiatives, and the valuation of these stocks. In this article, we'll delve into the top 10 mutual funds that hold more than 5% of the best railway stocks in their portfolios.

Table of Content

1. Top Railway Stocks

2. Top 10 Mutual funds with best railway stocks

3. Conclusion

Railway stocks are currently being viewed as lucrative investments. Unfortunately, there are no specific benchmarks tailored for railway stocks, nor do we have any thematic mutual funds solely dedicated to investing in them. Therefore, to address this challenge, we will compile a list of mutual funds with significant holdings in top-performing railway stocks. Additionally, we'll discuss the optimal investment strategies for these mutual funds, given the prevailing market conditions.
To start lets first look at some best Railway Stocks

TOP RAILWAY STOCKS

We've chosen 9 stocks that have shown remarkable performance over the past 1 to 3 years. What's particularly noteworthy is that all the stocks on this list are trading above their 5-year average P/E ratios. Notably, stocks such as IRCTC, CONCOR, and IRCON are hovering close to their 52-week highs. We'll delve deeper into this in the conclusion.

 Top 10 Mutual funds with best railway stocks (As on 29th Feb 24)

Here are some top mutual funds that currently hold all the stocks we discussed in the previous paragraph. Each mutual fund has its own unique portfolio composition based on its stock selection process. Therefore, you can select a mutual fund that aligns with your stock preferences.

Conclusion

In conclusion, the Railway sector remains highly appealing as a thematic investment, given its pivotal role in the country's development. However, the concern lies in valuation. With all stocks trading above their 5-year average P/E ratios and many nearing their 52-week highs, the situation is precarious.

Nevertheless, this shouldn't deter potential investors from considering railway stocks or funds heavily invested in them. We suggest initiating a SIP in light of the current scenario, allowing for unit accumulation during price dips. For those contemplating a lump sum investment, it's advisable to wait for more favorable valuations before committing significant capital.