Let us compare both to get a fair idea of what suits your investment plan more;
Risk : The most significant benefit of an FD is the guaranteed and fixed returns in the form of interest. In mutual funds, there is no guarantee and the loss and profit move per the market’s volatility.
ROI Money : FDs have a guaranteed return, whereas, in mutual funds, there is no guarantee of return on the investment as it is dependent on the market. Although, in the long run, they earn much higher returns than FD.
Liquidity : Individuals and corporates.
Tax Liability : The bank FD returns are taxed as per your income bracket upon maturity. On the other hand, mutual funds enjoy tax benefits and fixed indexation tax rates on the returns. Now you know where to drop by if you are looking for the best mutual funds to invest in.