A phrase contains either a subject or verb, but not both. There are two kinds of phrases used in sentences: prepositional phrases and verb phrases. The Prepositional Phrases are used mostly as adjectives or adverbs. There are three kinds of Verb Phrases or verbals: infinitives, used as nouns, adjectives or adverbs; and Participles, used as adjectives, and Gerunds, used as nouns.
Examples:
1. Prepositional Phrases.
The house with the red shutters is mine.
2. Infinitives:
(as nouns) To dream is wonderful.
(as objects) He wants to become King.
3. Participles (verbs used as adjectives)
The man reading the novel is my friend.
4. Gerunds (used as a subject or direct object):
(as subject) Reading can be fun.
(as object) She relaxes by reading. (reading is the direct object of buy).