Market Sentiment: Overall investor confidence and risk appetite impacts demand and therefore the fund's price. Negative sentiment can lead to increased selling pressure. Underlying Asset Performance: The fund's price directly reflects the performance of the assets it holds, such as stocks, bonds, or other investments. Strong performance drives price up, and vice versa. Fund Management Decisions: The fund manager's skill in selecting investments, managing risk, and allocating assets can influence the fund's returns and hence its price. Economic Conditions: Economic factors like inflation, interest rates, and GDP growth can impact the value of the underlying assets and subsequently the fund's price. Currency Fluctuations: For funds investing in international assets, currency exchange rates can affect returns when translated back to the fund's base currency, impacting its price. Supply and Demand: High demand pushes the price up while increased selling pressure causes it to decrease. This dynamic is a fundamental driver of fund pricing. Fund Expenses and Fees: Management fees and other operational expenses charged by the fund reduce overall returns, which may indirectly affect its price relative to competitors.