According to the Law on Capital Market in the Republic of Croatia (NN br. 54/13 i 18/15, art. 3) an investment company can be defined as a legal entity who provides one or more investment services to third parties and/or performs one or more investment activities on a professional basis. Croatian Agency for Supervision of Financial Services monitors all requirements, strategies, policies and procedures that an investment company has established in its business. Investment companies cover basic and auxiliary services and activities. The number of services and activities has significantly increased due to the fact that the system itself implemented the markets in financial instruments Directive. The analysis conducted over the business of the investment companies shows that the number of investment companies in the Republic of Croatia is decreasing. The following led to revenue fall from investment services and investment activities. The increase in profit in 2013 and 2014 led to increased profitability of investment companies. Investment companies in the Republic of Croatia are exposed to operational risk (loss from the inadequacy of organizational, personnel and technical requirements), credit risk (non-fulfillment of financial obligations to the investment company) and market risk. The analysis in this paper shows that the number of investment companies declined, however it did not stop their successful business. The overall business for the investment companies in the future is questionable due to the fact that there have been implementations of the new rules for investment companies through European union directives.