Mutual Funds

One major advantage of mutual fund vs fixed deposit is taxation. 

Mutual Funds are among the most tax efficient investments. 

Short term capital gains in equity funds (held for less than 12 months) are taxed at 20% and long term capital gains (held for more than 12 months) of upto Rs 1.25 Lakh are tax exempt and taxed upto 12.5% thereafter.