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)
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BREAKING DOWN 'Value Added Monthly Index  VAMI'
The valueadded 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

What is the Value Added Monthly Index (VAMI) and how is it used?
Find out about the value added monthly index, or VAMI, including how it is computed and how investors can interpret different ... Read Answer >> 
How can I calculate the tracking error of an ETF or indexed mutual fund?
Understand what tracking error is and learn about the significant difference it can represent for investors who favor index ... Read Answer >> 
Is it possible to invest in an index?
First, let's review the definition of an index. An index is essentially an imaginary portfolio of securities representing ... Read Answer >> 
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