A fuse which consists of a fine wire enclosed in a glass or ceramic tubing will melt in case the current exceeds a nominal value.
The current will flow to the appliance through the live wire and therefore the fuse should be connected to that wire. Once the fuse melts (in case a fault develops in the circuit), no current will flow in the appliance. But if the fuse was set in the neutral wire, the fuse will melt in case of a fault, but the appliance will still be live.
For large voltage, fuses are usually connected in both the live and neutral wires.

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