Fund Performance: Past performance and relative performance compared to its benchmark and peer funds significantly influence investor demand, driving the price. Market Sentiment: Overall market conditions, including economic growth, interest rates, and investor confidence, can affect the fund's valuation. Bull markets tend to increase prices, while bear markets can decrease them. Asset Allocation: The fund's investment strategy and asset allocation decisions, such as the proportion allocated to equities, bonds, or other asset classes, directly impact returns and, thus, the price. Expense Ratio and Fees: Higher expense ratios and management fees can negatively affect returns and potentially lower the fund's price compared to funds with lower costs. Fund Size: Very large fund sizes might lead to difficulties in generating alpha and reduce price growth, while smaller funds may face liquidity issues. Underlying Holdings: The performance of the individual companies or assets held within the fund directly influences the fund's overall performance and value. Currency Fluctuations: For funds investing in international assets, currency exchange rates can impact returns when translated back to the fund's base currency. Economic Factors: Economic indicators like GDP growth, inflation, and unemployment rates can affect the performance of companies held by the fund and, thus, the fund's price.