Which is good?

They both have their pros nd cons.

mutual fund may give u higher return but subject to market risk. if index doesn't perform it may result in lesser return or even in negative.

on the other end In F. D, your capital is safe., return is assured but the return is too low. may be enough to cover inflation rate but we can't build wealth with it.

More risk, More return.

As warren said "never put all of your eggs in one basket" hence do the same

Go for both M. F and F. D. invest in these both..and diversify as much as u can. like in M. F don't invest in single fund. Invest 50 percent of ur capital in bonds, f. d, r. d, Gold etf etc. and rest 40-50 percent in M. F, shares.