Does the actual fund price have any affect on anything (besides comparing it to its own performance)? Would there ever be less room for growth because of the share price? Or is the price irrelevant?
I will take a slightly different angle to the response. I will argue that it all depends on when you want the money back.
Lets take an example.
Year 1: NAV $10 bought $1000 worth of stocks no of stocks = 100 total stocks = 100
Year 3: NAV $5 bought $1000 worth of stocks no of stocks = 200 total stocks = 300
Year 6: NAV $10 bought $1000 worth of stocks no of stocks = 100 total stocks = 400
+ If you had held the fund through all 6 years and then sold the fund, you will get 400 * $10 = $4000 (profit)
+ If you had held the fund after 2 years and then sold the fund, you will get 100 * $5 = $500 (loss)
The NAV does not matter when you hold a mutual fund through ups and downs and Dollar Cost Average the stocks to a value that gets you a profit when you sell.
But, if you sell the fund in a downturn, then you will take a loss.
Right now, we have had 6 years of stock market upside...so, it is logical to expect a downturn at some point in the near future....lets say that the downturn lasts for 3 years. If you want your money back in 1 year, the entry price will matter.
Hope this helps.