A mutual fund is pretty much just as safe as the sum of the companies/instruments it invests in. Mutual funds are considered to be pretty safe since they offer diversification, whether that is through investing in different sectors or investing within one sector but acquiring multiple companies. So yes, a mutual fund focusing on blue chips would be a pretty good bet if you want a mutual fund 100% in stocks and not too high risk.
Another thing that makes depositing in banks a disadvantage for someone who wants to invest and earn more is the easy access on the money that the owner has. It doesn't provide you the right self-discipline to let your money grow because you can easily withdraw your money whenever you want to. If you feel like purchasing something or going on a trip somewhere, you could just withdraw your money from the bank and before you know it, you lost your money through spending without even gaining from it. If you invest them in mutual funds or whichever type of investment platform you decide, it isn't that easy to just withdraw your money whenever you feel like it. This allows your money to grow uninterrupted.
