are intended for long term wealth creation
may allow for partial withdrawalsoften come with higher fees and administration chargesexperience the same market exposure as any other investmentmay face a lock in period where funds can t be touchedmay not meet all insurance needsulips vs fixed depositsinvestors often must choose between contributing capital between a ulip or a fixed deposit fd plan while ulips are a type of investment option that combines insurance with investing fds are only investment vehicles the main difference between the two relate to the wealth creation the returns on ulip investments in stock and debt instruments are not fixed and are subject to fluctuations market circumstances and fund performance both affect returns fds in contrast provide fixed returns that are independent of the state of the market because ulips invest in stock and debt instruments which are prone to market fluctuations they entail a certain amount of risk you can lose deposited capital with a ulip fds on the other hand offer fixed returns making them lower risk investments at the sacrifice of higher returns after the lock in period partial withdrawals are possible with ulips though there may be fees associated with the withdrawal amount on the other hand fds more often not permit partial withdrawals and an early withdrawal may incur penalties 