Market Sentiment: Overall investor confidence and risk appetite significantly influence fund prices. Positive sentiment drives inflows, increasing demand and price; negative sentiment leads to outflows and price decreases. Underlying Asset Performance: The fund's investment portfolio’s success directly affects its price. Rising prices of held stocks, bonds, or other assets contribute to positive performance and higher fund valuation. Economic Conditions: Macroeconomic factors like interest rates, inflation, and GDP growth impact the performance of assets held within the fund, subsequently affecting its price. Currency Fluctuations: If the fund holds assets denominated in foreign currencies, changes in exchange rates will impact its value when converted back to the fund's base currency. Fund Management Expertise: The skill and experience of the fund manager in selecting and managing assets play a crucial role in generating returns and influencing the fund's price. Supply and Demand: Similar to stocks, the price of the fund is impacted by the forces of supply and demand. Increased investor demand leads to higher prices, while increased selling pressure results in price declines. Expense Ratio: The fund's operating expenses, including management fees and administrative costs, impact its net return and, consequently, its price. Lower expense ratios typically contribute to better performance.