Fixed deposit will be 100% safe investment but will provide you with returns approximate 6% with TDS and Taxes.
MF will give returns varying from 8% to 20%. if its exceptional then more then 20% or even like 3% or so depending upon your choice of fund.
Normal fund managers eat up alot of entry load commission say 1% but if you invest through Zerodha the commissions shall be minimum.
Also, you will holding your investments in demat form which offers severe benefits as mentioned here
So, it is advised to open a demat account with zerodha and save much more on commissions. Also, MF are preferred over Fixed deposits because of tax benefits and return benefits.
Open a Trading and Demat Account through Dematguru and get additional benefits upto Rs. 2,000/- with no additional charges. Visit Dematguru.com