FD VS Mutual Fund

this table helps you to understand the difference between FD and Mutual Funds

FeatureFDMutual Fund
Riskzero risk ( upto 5 lakhs deposit , protected by RBI)Medium to high
Liquiditycan liquidate,but it might have to pay some penalty or less interest redem before 1 year would attract you exit load and taxes and other penalties (varies)
Investment durationShort-term /long-term long-term (greater than 1 year)
Charges no charges as such A lot of charges ( exit load, expense ratio,..)
Professional managementNothing to manage Yes
DiversificationNo diversification / not applicable Yes
Tax efficiencyInterest income is taxableCapital gains are taxable

Additionally, FD rates have increased recently, so consider FDs as an investment option and don't overlook them.