Based on the performance of the application which one of is the best way
When you are adding files to the assets folder your whole application's size increases, hence you will require more of your device's RAM to execute the application. While the app will react faster it also requires more memory to run.
But when you are storing that file on SD card then you will require less RAM to load the your application. Fetching files from SD card will reduce your performance more than the first option but the difference is little.