Underlying Asset Performance: The primary driver is the performance of the assets the fund invests in. Positive performance increases fund value, negative performance decreases it. Market Sentiment: Overall investor confidence and market trends in the fund's investment region or sector influence demand and thus price. Interest Rates: Rising interest rates can make bond funds less attractive, potentially lowering their price, while falling rates can increase attractiveness. Inflation: High inflation can erode the real value of assets, negatively impacting fund performance and price. Fund Management Expertise: The skill of the fund manager in selecting investments and managing risk can affect fund returns and, consequently, price. Expense Ratio: Higher expense ratios can reduce net returns, potentially making the fund less appealing and influencing its price. Supply and Demand: Increased investor demand drives prices up, while increased selling pressure pushes them down. Currency Fluctuations: If the fund invests in foreign assets, currency exchange rates can affect the fund's value in the investor's domestic currency. Economic Indicators: Economic data like GDP growth, unemployment, and consumer spending in the fund's investment region influence asset values. Geopolitical Events: Major political events, such as elections or international conflicts, can create market volatility and impact fund prices.