Underlying Asset Performance: The fund's price is directly tied to the performance of the assets it holds. If the underlying investments (stocks, bonds, etc.) increase in value, the fund's price will generally rise, and vice versa.

Market Sentiment: General market conditions and investor confidence impact fund prices. Positive market sentiment can drive more investment into the fund, increasing demand and price. Conversely, negative sentiment can lead to redemptions and price decreases.

Fund Management Expertise: The skill of the fund manager in selecting and managing assets plays a role. A skilled manager may generate higher returns than the fund's benchmark, which could attract more investment and increase the fund's price.

Expenses and Fees: The fund's expense ratio (management fees, operating expenses) can affect returns. Higher fees reduce the overall return to investors, potentially impacting the fund's attractiveness and price.

Supply and Demand: The forces of supply and demand influence the price. Increased demand relative to supply generally pushes the price higher, while increased supply relative to demand can lower it.

Interest Rate Changes: Changes in interest rates affect bond prices, and can influence the prices of other assets. When interest rates rise, bond prices tend to fall, potentially impacting the fund's value if it holds bonds.