A Value Added Monthly Index (VAMI) is a metric used to depict a fund's overall performance to investors. It is calculated using net monthly returns starting with a $1,000 at time zero. VAMI is one of the most commonly used metrics to show how well an investment has performed over time.To calculate VAMI, you take the difference between the ending value of an investment and the original amount invested (in this case, $1,000), divided by the number of months that have passed since time zero. This figure shows you how much your investment would have increased or decreased in value each month if you had invested $1,000 at time zero.For example, let's say that after 12 months, your investment is worth $1,200. To calculate your VAMI for those 12 months: ($1,200 - $1)/12 = 0.083%. That means that if you had invested $1000 in this fund at time zero , your average monthly return would have been 0.83%.It's important to note that VAMI does not account for inflation; it only measures changes in real terms . In order to get a more accurate picture of how well your investments are performing , it's best to compare them against other investments or indexes which do account for inflation .
