Prudent person rule

{
  "id": "MLC-T-LAW-004004",
  "term": "Prudent person rule",
  "field": "Law",
  "definition": "A legal standard requiring a fiduciary, like a trustee, to manage another's assets with the same care, skill, and caution that a person of ordinary prudence would exercise in managing their own affairs. This standard emphasizes the preservation of capital and the avoidance of speculation. Many jurisdictions have since adopted the modern \"prudent investor rule,\" which evaluates investment decisions in the context of the entire portfolio rather than as individual assets.",
  "url": "https://mlchart.com/terminology/law/prudent-person-rule/"
}