What does an investment company do?

Regardless of whether an investment company is legal or not, what investment companies do is collect funds from the public and channel them to various investment instruments, both in the capital market and money market. An example of an investment company is a mutual fund.
 
Investment companies allow people to invest their funds without having the knowledge of any particular investment. The investment company decides what to invest with your funds. The investor just expects the returns which is shared with the investment company.
 
Investment companies tend to give or create investments opportunities for both beginners and professionals. They also train and advice people on which investment to go into.
 
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