Functional testing is the part of System testing or System
testing is the part of functional testing

Answer Posted / jj

Functional Testing is carried out to test the product developed is meeting the requirement and are not bother on factors like environment, performance of the system etc. And this is carried out to make the system stable.

System testing is carried out in an ideal environment to verify the load the system can handle once it is stable where Non Functional Requirement are also taken in to consideration. Other Tests like Load, Installation, Usability, Security tests are carried put in this phase.

So for me both are not part of either, but are carried out keeping different perspectives of test activities.

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