Value Added Monthly Index - VAMI

AAA

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. Fund Manager

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

    The ability of an asset to generate earnings, which are then ...
  5. Value Added

    The enhancement a company gives its product or service before ...
  6. Bear Fund

    A mutual fund designed to provide higher returns when the market ...
Related Articles
  1. Achieving Better Returns In Your Portfolio
    Bonds & Fixed Income

    Achieving Better Returns In Your Portfolio

  2. Earnings: Quality Means Everything
    Investing

    Earnings: Quality Means Everything

  3. Understanding Pro-Forma Earnings
    Fundamental Analysis

    Understanding Pro-Forma Earnings

  4. Morningstar's Stewardship Grade Scores ...
    Mutual Funds & ETFs

    Morningstar's Stewardship Grade Scores ...

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center