Prudent Investor Rule
Categories: Financial Theory, Trusts and Estates
An outgrowth of the "prudent man rule."
This standard asks a fiduciary to invest like a prudent investor. They can't just sink all your funds into junk bonds; they have to invest as though they were investing in themselves.
Note that this does not guarantee anything about how your investments will do. A fiduciary might invest reasonably and still lose money on the market; the rule only requires that reasonable decisions are made.