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 Says:
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:
Compounding
Fund Manager
Return
Value Added |