Value Added Monthly Index - VAMI

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DEFINITION of 'Value Added Monthly Index - VAMI'

An index that tracks the monthly performance of a hypothetical $1000 investment.

The calculation for the current month's VAMI is:
= Previous VAMI x (1 + Current Rate of Return)

BREAKING DOWN 'Value Added Monthly Index - VAMI'

The value-added monthly index charts the total return gained by an investor from reinvestment of any dividends and additional interest gained through compounding. The VAMI index is sometimes used to evaluate the performance of a fund manager.

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RELATED FAQS
  1. What is the Value Added Monthly Index (VAMI) and how is it used?

    The value added monthly index, or VAMI, tracks the monthly performance of $1,000 under hypothetical parameters. The calculation ... Read Full Answer >>
  2. Does index trading increase market vulnerability?

    The rise of index trading may increase the overall vulnerability of the stock market due to increased correlations between ... Read Full Answer >>
  3. What is the difference between passive and active asset management?

    Asset management utilizes two main investment strategies that can be used to generate returns: active asset management and ... Read Full Answer >>
  4. Is there a situation in which wash trading is legal?

    Wash trading, the intentional practice of manipulating a stock's activity level to deceive other investors, is not a legal ... Read Full Answer >>
  5. What action is the SEC likely to take on 12b-1 fees?

    The Securities and Exchange Commission (SEC) may take action to impose greater regulation on how 12b-1 fees are used, or ... Read Full Answer >>
  6. What is considered a reasonable 12b-1 fee?

    A reasonable 12b-1 fee is generally considered to be 0.25% of the assets of the mutual fund. The maximum amount allowed for ... Read Full Answer >>

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