I have both, personally I like ETF because of flexibility. MF has some extra fees attached to it which you have to pay during redemption .Wherein ETF are like shares, you can buy and sell as you want.
Out of my equity investment, I invest:
1. The first part in the Nifty 50 Index Mutual Funds to get relatively safe returns.
2. The second part in the ETFs to get high returns (relatively risky). I choose it over Small Cap mutual funds.
PS: I won't tell you which MFs or ETFs to invest in. You should do your market research to determine that based on your risk appetite and goals.