As more people invest in the strategies, The fund manager of the strategy goes ahead and invests that money into stocks, bonds and other assets.
In return of the money that investors invest, they receive units that are proof of their ownership.
Investors track the value of their investments through the NAV (net asset value) of their units where the NAV = (total net value of the fund)/(total units issued by the fund)
Mutual fund net asset value (NAV) represents a fund’s per share market value. It is the price at which investors buy/sell fund units from/to a fund company. It is calculated by dividing the total value of all the cash and securities in a fund’s portfolio, less any liabilities, by the number of units outstanding. NAV of a fund moves on a daily basis depending on how the underlying assets of the fund perform.