Fund Performance: A fund's historical and current performance directly influences investor demand. Strong performance typically attracts more investment, driving up the fund's price.

Market Conditions: Broad economic trends, sector performance, and overall market sentiment significantly affect fund valuations. Positive market conditions generally boost fund prices.

Interest Rates: Changes in interest rates can impact bond yields, which can in turn affect bond fund prices. Rising rates often lead to lower bond prices.

Fund Management: The expertise and strategy of the fund manager play a crucial role. Effective management decisions can lead to higher returns and subsequently, a higher fund price.

Expense Ratio: A fund's expense ratio (operating costs) can affect returns and, indirectly, the price. Higher expense ratios may detract from overall performance.

Investor Sentiment: General investor optimism or pessimism can drive buying and selling activity, impacting fund prices regardless of fundamental factors.

Currency Fluctuations: If the fund invests in international assets, currency exchange rate fluctuations can affect the fund's value and price.

Fund Size: The size of the fund can affect its liquidity and ability to efficiently manage assets. Very large funds may face challenges deploying capital effectively.