ULIP vs Fixed Deposit

There is always a degree of risk, however small, involved in a ULIP. Traditionally, investors preferred investing in safer instruments like Fixed Deposits, despite the lower returns. But Fixed Deposits are able to only beat the inflation. On the other hand a ULIP is a market-linked plan with an equity exposure. A plan with an equity exposure for a long term usually consistently gives better returns than any other asset like Fixed Deposit or Bonds.