Don't buy a stock just because of its low price: Here's why

Last week, I discussed how an illusory idea of the ‘price’ of a mutual fund created problems for investors. Investors think of the NAV of a fund as its price, which leads to flawed concepts in the way they choose funds. The worst aspect is to compare two funds on the basis of NAV and think that in some sense, funds with the same NAV must be similar. (Click here to read the column: Anyone asking you to choose a mutual fund scheme because it has