Personal Finance Passive vs Active Investing: Four reasons why you should consider index funds Updated : October 15, 2018 09:41 AM IST Passive funds are also known index funds. Index funds invest in a group of securities that replicate the index. Warren Buffet has been a strong proponent of passive investing. Subscribe to Moneycontrol PRO at just Rs.33/- per month for the first year. Use code SUPERPRO. Limited period offer. Available on Web and Android.