After demonetization there is two major way of investment available in India i.e. fixed deposit and mutual funds. Major question that keep on popping up in our mind is what difference between fixed deposit and mutual funds is. Primarily fixed deposits are opened with banks where as mutual funds are managed by mutual funds companies. Difference between fixed deposit and mutual funds in India is mainly risk appetite of investor. When it comes to returns and taxation points, we need to be more elaborative to learn everything about it.