Economic Factors: Overall economic health influences fund performance. Strong growth boosts corporate earnings, driving up asset values. Weakness can lead to declines.

Interest Rates: Higher interest rates can make bonds more attractive, potentially diverting investment from equity funds. Lower rates can boost equity valuations.

Market Sentiment: Investor optimism or pessimism can drive market trends, affecting fund prices regardless of underlying asset performance. Favorable sentiment increases demand; the reverse lowers prices.

Company Performance: The performance of the individual companies held within the fund directly impacts its overall value. Positive earnings reports and strong growth boost the fund.

Sector Performance: If the fund focuses on a specific sector, the performance of that sector will significantly influence the fund’s price. A booming sector benefits the fund.

Fund Management: The skill and decisions of the fund manager play a crucial role. Effective strategies lead to better returns.

Expense Ratio: Higher expense ratios detract from returns, potentially reducing the fund's price compared to lower-cost alternatives with similar holdings.

Geopolitical Events: Global events, such as political instability or trade wars, can create market uncertainty and impact fund prices, especially for international funds.