Investment funds are financial institutions that raise funds using the principles of security, liquidity, profitability and risk sharing. Cash is invested in securities in various areas of the labor market, investments, issuers, cash deposits and other types of assets. The investment triggers short-term and long-term goals and today investments are a favorable contribution to the Republic of Croatia and the world. Investment funds in the Republic of Croatia are managed by the Croatian Financial Services Supervisory Agency (HANFA), while the legislative framework of investment funds are governed by the Law on Investment Funds. The Law on Alternative Investment Funds and the Law on Open Investment Funds are also important in addition to the mentioned law. Todays business is increasingly oriented towards various changes in the conduction of jobs in the labor market. Some individuals make a profit and some are dissatisfied with the changes which happen in their investment fund business. The basic categories of investment funds are closed and open funds, and they are then divided into sub-types that we will be introduced to later. The most important thing to remember is that every investment has its advantages and disadvantages. It can be positive and successful, but on the other hand negative and risky.