‘Mint’ recently carried an interesting article on modern day exercises titled ‘The dynamics of group workouts’. Here is the link http://bit.ly/1YciY5l. The exercises described include Bokwa, Aqua Aerobics, Zumba, Parkour, etc. For those who are hearing these names for the first time, here is a brief.

Bokwa is a combination of two words - boxing and kwaito (a music and dance routine with origins in South Africa). Here the participants move in the shape of letters and numbers, like they are drawing with their feet, while performing a cardio-workout routine to popular music. Zumba is a Latin-inspired cardio-dance workout that uses music and choreographed steps to form a fitness party atmosphere. Parkour or free running, on the other hand, is the art of moving the human body in a way that is most efficient. It is derived from the military obstacle course training and involves navigating a complex environment in the best way possible. Aqua aerobics simply means exercising in water. The principle used is that water, due to its buoyancy, lessens the impact on joints while one works out and is useful for those who are overweight or recovering from an injury.

What do these modern forms of exercises have in common – they are all group exercises vis-à-vis a traditional gym which is more of an individual exercise. These group exercises have caught fancy because newcomers found it tough to continue their exercise regime in a gym as it needs a great deal of push and self- motivation leading to high drop-out rates. On the other hand, these group fitness regimes have a fun / adventure quotient making them less stressful. So if one has to stay fit, any form of exercise is good, be it a gym or Zumba, what matters more is consistency and longevity of the routine.

These individual and group fitness regimes have similarities with the way we invest as well. While many may invest in assured returns products, they may not necessarily be happy owing to declining interest rates. They are in search of newer avenues which have the potential to provide better returns. Modern forms of investment could be a possible remedy which have the potential to beat inflation and create wealth over the long run through market linked returns.

Welcome to mutual funds, which are a ‘pooled’ form of investment available across avenues (asset classes) like equity, debt, gold and foreign securities. The choice is based upon one’s risk appetite, goals and investment horizon. Mutual funds pool small sums of money to generate economies of scale. For example, if stock A costs Rs.2000 and stock B costs Rs.1000, one can still buy both stocks for just Rs.500 per month via mutual funds because there would be many who would contribute Rs.500 and the pooled amount is used to buy these stocks in a single portfolio. Thus one is able to buy highly valued stocks through a mutual fund for a nominal amount.

To help investors inculcate the habit of regular investing mutual funds offer Systematic Investment Plans or SIPs similar to the music and dance combination that is used to encourage regular exercising. One can start a SIP with a sum of even Rs.500 per month and gradually increase it with rise in income. Being market linked products, mutual funds have a greater potential to beat inflation and create wealth over the next 10, 20, 30 years.

So, whether it is going to a gym or Zumba for health and fitness or investing through SIPs of mutual funds for wealth and prosperity, all you need is consistency and longevity. There are no short-cuts.

Online SIP calculator can be used to calculate your returns and your investments.

Information contained in this article is not a complete representation of every material fact and is for informational purposes only. The recipient is advised to consult its advisor/ tax consultant prior to arriving at any investment decision.