Full formBusiness & Corporate
LPDstands forLowest Price Day
Full Form of LPD
What is LPD?
Lowest Price Day (LPD) is a strategy used in mutual fund investments, particularly for systematic investment plans (SIPs) in India. It refers to the specific day of the month on which the scheme’s net asset value (NAV) is historically at its lowest. Investors employing the LPD approach schedule their SIP installments to fall on that day, aiming to accumulate more units at a lower cost. This concept arises from the observation that equity markets often exhibit cyclical patterns, and certain days tend to see lower prices due to factors like fund inflows, corporate actions, or global cues. In India, mutual fund houses and investment advisors promote LPD as a simple tool to enhance long-term returns without timing the market actively. While past performance does not guarantee future results, many portfolios, especially those tracking large-cap indices, show identifiable low-price windows. The LPD method is widely discussed in personal finance blogs, SEBI investor education materials, and mutual fund workshops. For students preparing for financial certifications like NISM or CFP, understanding LPD helps in grasping advanced SIP strategies. However, investors must note that LPD works best for index funds and large-cap schemes with stable trends, and should be combined with diversification for optimal results.
LPD का फुल फॉर्म
न्यूनतम मूल्य दिवस
Example
I adjusted my mutual fund SIP to the 15th of every month after checking the LPD for my chosen large-cap fund.
LPD — frequently asked questions
What is the full form of LPD?
LPD stands for Lowest Price Day, a concept in mutual funds referring to the day of the month when a scheme's NAV is historically lowest.
How do I find the LPD for a mutual fund in India?
You can analyse past NAV data of a fund over 2-3 years using online tools or mutual fund portals like AMFI or Value Research to identify the day with the most frequent low closing prices.
Is LPD strategy guaranteed to give higher returns?
No, LPD is based on historical patterns and past performance does not guarantee future results. It works best for index and large-cap funds with consistent trends, but you should still diversify your investments.