there are no guarantees in stock market.. anything csn happen.. only guarantee is what is backed by govt.. like govt bonds or ppf or pf or 5L FD insurance by digc..
Well it depends on the mutual fund, if you invest in a good large cap mutual fund for long term then it will give returns better then FD most of the time.
There are mutual funds that are giving negative returns too. as the saying goes, Risk aur opportunity ke bech mein he toh chance milta hai, aur jo iss chance ke saath romance karta hai wahi asli raja kehlata hai
stay invested for long term as MF's and you could get better return than FD