The subject of this specialist graduate thesis is investing the population into investment funds in the Republic of Croatia. Following the start of the 2008 global economic crisis, we are witnessing a decline in citizen confidence in investing in investment funds. At the beginning of the crisis, due to the drastic drop in stock prices, investment funds lost their value and lost the wider confidence of investors, especially citizens, over a longer period of time. Most of the investment funds ended in minus. Although citizens are still afraid of the risks, in 2016 investment funds record growth in yields and close to the end of the year with total assets of HRK 18.77 billion in the Republic of Croatia. In developing and transition countries the investment funds industry, although experiencing rapid growth rates, is still lagging behind in developed countries. This paper analyzes the types of investment funds in Croatia and compares the characteristics and returns of investment funds in relation to other types of savings. In addition, the importance of behavioral finance will be demonstrated to answer he question of linking human thinking to investing in investment funds. Also, survey will be conducted on investment of citizens in investment funds. Investment in investment funds has become a relevant substitute for classic time savings in banks, but also a new way of thinking about a more financially stable future. The objectives of the paper were achieved by comparing the open investment funds in the Croatian market with an emphasis on the ZB investment funds, which enabled them to answer the question of what kind of funds exist in Croatia and what are their characteristics. Similarly, the income of each fund in the Croatian market was compared to the type of fund and it was noticed which investment funds in Croatia had the highest income. In response to research questions in the paper, an analysis of the risk of individual funds was made with respect to the investment portfolio and all other aspects of risk. The results of the research have shown that the citizens of the Republic of Croatia are still not sufficiently informed about the manner, operation and operation of the investment funds, as well as the advantages and disadvantages that such type of investment carries with them.