Economic Growth: Stronger economic growth often boosts corporate profits, increasing the value of stocks held by the fund. Conversely, slower growth can hurt company earnings and lower stock prices.

Interest Rates: Rising interest rates can make bonds more attractive than stocks, potentially leading to a shift away from equities and affecting the fund's value. Lower rates tend to support stock prices.

Inflation: High inflation can erode corporate profitability as input costs rise, potentially leading to lower stock valuations. Moderate inflation is generally viewed favorably.

Market Sentiment: Investor optimism or pessimism can influence overall stock prices, even if underlying fundamentals remain unchanged. Bull markets lift most stocks, while bear markets depress them.

Company Performance: The financial health and performance of individual companies held in the fund's portfolio directly impact the fund's value. Strong earnings reports boost share prices.

Sector Performance: The performance of specific sectors that the fund invests in can significantly affect its overall value. For example, a strong technology sector benefits funds with large tech holdings.