Why passive mutual funds are attracting more investors? Why passive mutual funds are attracting more investors? Passive mutual funds are gaining popularity due to the underperformance of active mutual funds, the introduction of debt passives, and the continuous introduction of new products. Continue reading to learn more. Henil Shah / Tuesday, November 22, 2022 / Article rating: 5.0 Passive mutual funds are gaining popularity due to the underperformance of active mutual funds, the introduction of debt passives, and the continuous introduction of new products. Continue reading to learn more.