Let's understand here difference between FDs and Mutual Funds
Returns
FDs - Fixed Interest Rate Mutual Funds - Market linked performance
Risk
FDs - Often low Mutual Funds - Low to High, depending on the type
Expense
FDs - No expenses Mutual Funds - entail an expense ratio
Liquidity
FDs - Low Mutual Funds - Generally high
Investment amount
FDs - Specified minimum amount, often no maximum Mutual Funds - Specified minimum amount, often no maximum
Tenure
FDs - Fixed tenure (1 to 10 years) Mutual Funds - depends on investor preference
Taxation
FDs - Taxable as per the criteria Mutual Funds - Taxable as per the criteria
Fund management
FDs - No Fund manager required Mutual Funds - requires a Fund manager
Regulating Authority
FDs -Reserve Bank of India (RBI) Mutual Funds - Securities and Exchange Board of India(SEBI)
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