Why is active investing going out of style?

It depends on your investment objective and your style of play.

Personally, I prefer value investing since I can spend lesser time monitoring the market.

Either way, it funnels down to personal expectation.

Here is everything about me and what I do best.

Fees.

Active investment charge lots of fees for the management of the fund.

All is well if the funds performance justify the extra expenses, but over the decades so many researches and studies have pointed out that the extra fees does not justify the performance. Most funds are underperforming passive funds and the extra fees removed a big chunk of the performance gains of the fund itself.

With the internet, people know more and share more, hence more and more people realised active investing is not ideal for saving and investment

I am practicing capital appreciation for my portfolio! :)

When things go out of style, it is good for value investors because there are less hardworking individuals in the stock market!

I don't think it's going out of style. There will always be active investors around. And no, the output returns will not be the same. My income ceiling portfolio (active) generates returns of 40% or more compared to my income floor (passive) of about 6-7%.