Underlying Assets' Performance: The primary driver is the performance of assets held within the fund, such as stocks, bonds, or real estate. Positive performance increases the fund's Net Asset Value (NAV).

Market Sentiment: Overall market optimism or pessimism can influence demand for the fund. Positive sentiment often leads to increased investment and higher prices.

Interest Rates: Changes in interest rates, especially if the fund holds bonds, can significantly impact its value. Rising rates typically decrease bond values.

Currency Fluctuations: If the fund invests in assets denominated in foreign currencies, exchange rate changes will affect the fund's value in GBP.

Fund Expenses: Management fees, operating expenses, and transaction costs are deducted from the fund's assets, reducing returns and potentially affecting the price.

Supply and Demand: Like any asset, the price is also determined by the forces of supply and demand. Higher demand relative to supply will increase the price.

Economic Conditions: Broad economic indicators such as GDP growth, inflation, and unemployment can influence investor confidence and fund valuations.