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)

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Value Added

    The enhancement a company gives its product or service before ...
  2. Return

    The gain or loss of a security in a particular period. The return ...
  3. Value-Added Tax - VAT

    A type of consumption tax that is placed on a product whenever ...
  4. Fund Manager

    The person(s) resposible for implementing a fund's investing ...
  5. Compounding

    The ability of an asset to generate earnings, which are then ...
  6. Dividend

    A distribution of a portion of a company's earnings, decided ...
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 >>
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