How to Segment MFD Clients by AUM, SIP and Family

Why should an MFD segment clients at all?

A growing MFD book quickly outgrows the principal's memory. Without segments, service tends to follow whoever calls most often, while quiet clients with complex needs can go months without a review.

Segmentation is a capacity tool. It decides how often each relationship is reviewed, who owns it and how the team spends limited time. It should never decide what product a client is offered or whether a client deserves respectful service.

How to define AUM bands for client segmentation

Set AUM bands based on your own book, not on a template from another practice. Look at how your AUM is distributed across clients and families, then draw a small number of bands that separate genuinely different service needs.

Three or four bands are usually enough. Use AUM from reconciled RTA data, such as CAMS and KFintech reports, rather than figures typed in by hand. Decide whether bands use the latest month-end value or an average over a period, since market movements can push clients across a line and back again.

• Use consistent valuation dates for every client
• Include all folios mapped to the client, not just the primary one
• Add a small buffer or review period before moving a client down a band
• Document the band rules so every team member applies them the same way

How to use SIP data in MFD client segmentation

SIP information shows the current relationship and its continuity. A client with modest AUM but regular, long-running SIPs often needs a different kind of attention than a client with a single large lump sum.

Useful SIP fields include total active SIP amount, number of active SIPs, recent cessations and bounce history. Bounces and cessations are service signals: they may mean a mandate issue, a bank change or a change in the client's situation that deserves a conversation. Treat them as prompts to check in, not as sales triggers.

• Total active SIP amount across the client's folios
• Number of active SIPs and their registration dates
• SIPs ending soon, so renewal can be discussed at the next review
• Recent cessations or pauses and the recorded reason
• Bounce history, which may point to a mandate or bank account issue
• Related STP or SWP instructions that affect how the client should be serviced

How to group clients into families and households

Many MFD relationships are really family relationships. Spouses, parents, children and sometimes HUFs or family businesses are managed together, reviewed together and make decisions together.

Create a family or household record and link each member, with a clear head of family or primary contact. Family-level AUM and SIP totals then roll up automatically. Keep individual records intact, because KYC, nominees, folios and consent remain individual even when the relationship is shared.

• Map every folio to the correct individual using PAN where available
• Link individuals to one household with a defined relationship type
• Record who the team should contact for scheduling and reviews
• Respect individual confidentiality within the family where requested

What service model should each client segment get?

A segment is only useful if it comes with a service promise. For each segment, define the review frequency, the review format, the named owner and the expected response time for requests. Keep the promises realistic for your team's capacity.

Every client should receive a baseline of accurate records, timely service and clear communication. Segments change frequency and depth, not basic respect. In Aina CRM and similar setups, the segment can drive review due dates and owner assignment automatically, so the promise is tracked rather than remembered.

• Review frequency, such as quarterly, half-yearly or annual
• Review format: in-person, video call or phone
• Named relationship owner and backup
• Expected turnaround for service requests
• Preferred and permitted communication channels

How to keep client segments accurate over time

Segments drift as markets move, SIPs start and stop and families change. Recalculate them on a fixed schedule from reconciled data rather than editing them manually one client at a time.

Allow exceptions, but record the reason and a review date. A client in a lower AUM band may need more frequent reviews during a major life event, and that should be a visible, deliberate decision. Review segment movements and exceptions together so the rules stay fair and consistent.

Core checklist

A practical action plan

1. 1

   Agree on segment definitions and the service promise for each segment.

2. 2

   Calculate segments from clean, reconciled source data.

3. 3

   Allow controlled exceptions with a reason and review date.

4. 4

   Review segment movement and service delivery at fixed intervals.

Frequently asked questions