Prudent investor rule

{
  "id": "MLC-T-LAW-004003",
  "term": "Prudent investor rule",
  "field": "Law",
  "definition": "A legal standard governing the investment of trust assets by a trustee, requiring them to act with the care, skill, and caution that a prudent person would exercise in managing their own affairs. This rule emphasizes diversification of investments and consideration of the overall portfolio rather than individual investments. It replaced the older \"legal list\" approach in many jurisdictions.",
  "url": "https://mlchart.com/terminology/law/prudent-investor-rule/"
}