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 Commentary
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.
See also: Compounding, Fund Manager, Return, Value Added
Also spelled: Value-Added Monthly IndexVAMI