While no investment is entirely risk-free, passive investments are generally considered to be more secure than their actively managed counterparts. By tracking a benchmark index, passive funds invest in a diversified range of securities, providing stability and spreading the risk. The risk levels associated with passive funds are usually lower than those of actively managed funds, making them suitable for conservative investors or those with a long-term investment horizon. However, it is essential to assess your risk tolerance and choose funds that align with your investment goals and risk appetite to ensure a secure investment experience. The rise in popularity of passive investing can be attributed to the passive mutual funds definition, which emphasises cost-efficiency and a hands-off approach to investing.