Passive portfolio scheme attires similar investment plan of active portfolio to reach investment goal. Therefore, market often refers it as passive investment or index investment. This portfolio strategy focuses on diversifications and not instant return outcome. This type of investment portfolio relies entirely on the market data. It eventually prevents any market valuation misinterpretation during investments. Investors in passive funding put their money on indirect path; stocks, bonds, and other assets that generate passive income in the form of dividends, interest, and rents.