Underlying Assets' Performance: The primary driver of the fund's price is the performance of the assets it holds. These could be stocks, bonds, or other investments. Positive returns increase the fund's value, while losses decrease it. Market Sentiment: Overall investor confidence and risk appetite affect demand for the fund. Bullish markets typically see increased inflows and higher prices, while bearish markets lead to outflows and lower prices. Interest Rates: Changes in interest rates, particularly if the fund holds bonds, can impact its price. Rising rates often lead to lower bond values, decreasing the fund's overall value. Economic Conditions: Economic factors like GDP growth, inflation, and unemployment influence the performance of companies and markets, ultimately affecting the fund's returns. Fund Management Fees: Management fees and other expenses directly reduce the fund's net asset value, which in turn affects its price. Higher fees lead to lower returns for investors. Currency Fluctuations: If the fund invests in assets denominated in a different currency, exchange rate movements can significantly impact its price. A strengthening foreign currency increases the fund's value in the investor's base currency.