Whether a person takes it as reality or illusion it all depends on his mental and intellectual conditions will determine the phenomenal world observed and experienced.

The theory of fate (Prarabdha) is for the ignorant one because those who accept the waking entity as self and waking world as reality will remain in believing in the theory of birth, death and rebirth. 

 The waking entity and the waking world are reality within the waking experience. The waking experience itself is an illusion from ultimate standpoint. 

The body being in this universe , does not also exist and due to this, Prarabdha also does not exist, Though the Vedas speak of Prarabdha, For the understanding of the ignorant.

The Mundaka Upanishad says that:- Ksheeyanthe thasya karmani thasmin drushte cha paravare, Bahuthwam than nishedartha sruthya geetham cha yath sphutam. 98

The body being in this world does not also exist and due to this, Prarabdha also does not exist, though the Vedas speak of Prarabdha, for the understanding of the ignorant.

All actions of man including Prarabdha, Perishes when one is able to see, Brahman which is in the higher and also lower, Thus tell the Vedas with clarity, *Cause and effect If fate does not get destroyed, ignorance gets never destroyed and spiritual realization never comes.

Karma theory is religious fable. Karma theory is based on the birth entity whereas the self is birthless.  On the standpoint of the birthless self, the experience of birth, life, death and the world are mere illusion.  Thus holding birth entity as real self and the world as reality is erroneous.

Uchyathe agnai balath chaithaththadaanatha thad vayagama, Vedantha matha hanam cha yadho jnanam ithi sruthi. 99

If the ignorant adamantly refuses to know this, Not only will they get involved in two absurdities*, But also forsake the conclusions of Vedantha, Which proceed from Veda, the true knowledge. *negation of Brahman and its realization.

Brihadaranyaka Upanishad declares that:-Brahman is the form of the Athma, and it is indeed Athma itself. 

Whatever have appeared (birth, life, death and world) has appeared on its own and it disappears on its own.  Whatever have appeared (birth, life, death and world) has appeared on its own and it disappears on its own.  Whether a person takes it as reality or illusion it all depends on his mental and intellectual conditions will determine the phenomenal world observed and experienced. The look of an object will depend upon the medium through which the observer views it. A Gnani viewing the universe (practical life within the practical world) different from the ignorant is viewing the same universe (practical life within the practical world). Each one of them interprets the universe he sees in term of his existing knowledge.  The Gnani sees his body, his ego and his experience of the world as mere mirage created out of consciousness whereas the ignorant sees his body as body, his ego as ego and his experience of the world as world.  

Thus experiencing the pain and pleasure within the illusion with the illusory self, within the illusory experience, has to be illusion. The illusion is created, and sustained, and finally dissolves as consciousness, which is the innermost Self.  Since, there is no second thing other than the consciousness (soul); the consciousness itself is ultimate truth or Brahman.   The one who has realized this truth for him this illusion is passing show because he is fully aware of the fact that his body, his ego and his experience of the world to be consciousness. Practical peoples approach is more practical, and they are stuck with the reality of the practical life within the practical world, they take it as real whereas for Gnani has the firm conviction that:- 

Formless soul or Consciousness is the witness that experiences the action, the actor, and the world of separate things. It is like a light that illuminates everything in a theatre, revealing the master of ceremonies, the guests, and the dancers with complete impartiality. Even when they all depart, the light shines to reveal their absence.

What is not consciousness (formless) in the experience of diversity (universe or waking)?  The waking and the dream cease to exist without consciousness.  The seeker, seeking and his destination   all are one in essence. The look of an object will depend upon the medium through which the observer views it. A Gnani viewing the universe (practical life within the practical world) different from the ignorant is viewing the same universe (practical life within the practical world). Each one of them interprets the universe he sees in term of his existing knowledge.   The Gnani sees his body, his ego and his experience of the world as mere mirage created out of consciousness whereas the ignorant sees his body as body, his ego as ego and his experience of the world as world.  

Thus experiencing the pain and pleasure within the illusion with the illusory self, within the illusory experience, has to be illusion. The illusion is created, and sustained, and finally dissolves as consciousness, which is the innermost Self.  Since, there is no second thing other than the consciousness (soul); the consciousness itself is ultimate truth or Brahman.   The one who has realized this truth for him this illusion is passing show because he is fully aware of the fact that his body, his ego and his experience of the world to be consciousness. Practical peoples approach is more practical, and they are stuck with the reality of the practical life within the practical world, they take it as real whereas for Gnani has the firm conviction that:- 

Formless soul or Consciousness is the witness that experiences the action, the actor, and the world of separate things. It is like a light that illuminates everything in a theatre, revealing the master of ceremonies, the guests, and the dancers with complete impartiality. Even when they all depart, the light shines to reveal their absence.

What is not consciousness (formless) in the experience of diversity (universe or waking)?  The waking and the dream cease to exist without consciousness.  The seeker, seeking and his destination   all are one in essence.