If we assume general conditions in grassland (good cover) and forest (good canopy) and soil is permeable, forest cover will be better. The reason is differences in interception. Forest interception can be higher with canopy interception and stem flows and litter layer intercepting more. Grassland interception depends on the species and extent of root zone to intercept.
Forest ecosystem is far more effective in minimising the surface run off than grassland ecosystem , in majority of cases on account of pedo-geochemical cycling if nutrient , water and carbon accredited...
It has been my observation that in a forest ecosystem that is as you say in good condition there will be very little run off, if any, since there are far more avenues for the rainfall once it falls onto the canopy at what ever level to move into the duff layer and then soak into the soil. The soil is normally much more pourou in the forest situation.
In a grassland situation there are many species of sod/mat forming vegetation that can/will form dense growth that can actually prevent good/easy penetration of rainfall. This can inturn lead to sheet flow over the grassland and erosion when the velosity of the runoff increases.
Forest with vegetation is anytime a better choice, although depending on the region and the natural vegetation, if grasslands with good root zone can equally control run-offs.
Of course, forest ecosystem provide the best management of water run offs because the excellent canopy provides a stronger buffer for managing the run offs than grasslands.
Forests dominated by trees are more effective in minimizing the rate of rainwater runoff than grasslands. Trees are increasingly recognized for their importance in reducing run-off. They provide surface area where rain water lands and evaporates. Roots of trees take up water and help create conditions in the soil that promote infiltration.
Arvind, answer to your question will depend on definition of good for it is a qualitative term. As I believe the run off depends on crown cover and tree density which is quantified by indices. Also run-off is regulated by understory vegetation, rooting behaviour of plants and porosity of soil. All these variables including litter and humus change in different forest types. Therefore, you need to be explicit. Otherwise, a layman answer to your question in my view is good forest.
Agreeing with the answers that forest is better to avoid runoff, I think is very important, besides the vegetation cover and the permeability of the soil, how the geomorphology is. In so many cases, it will restrict the vegetation type, making herbs the only possiblility.