Some function generators have floating outputs, others do not. Looks like the one you are using is not floating, meaning that you ought to connect the "negative" terminal to ground. Or if your circuit is floating, at least to whatever point your scope ground lead is connected to. (But be sure to understand what you are doing if you go for this option, same holds for an isolation transformer!)
Rarely do I ever need a floating signal generator, so at least for me, it's not really an issue. I use a differential probe if I don't want to connect the scope probe ground lead to ground, but that's apparently not what you are looking for.
Regards
Matt