Value Added Monthly Index - VAMI


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.

  1. Return

    The gain or loss of a security in a particular period. The return ...
  2. Value Added

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

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

    A standard against which the performance of a security, mutual ...
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  1. What is the Value Added Monthly Index (VAMI) and how is it used?

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