prudent person rule
- An obligation that a trusted agent such as a trustee or investment manager must make investments wisely, with care, offering reasonable returns, and primarily in low-risk assets
- The prudent person rule deterred the pension fund manager from risky investments.
- As per the prudent person rule, the city treasurer focused on secure loans and blue chip securities.
- In line with the prudent person rule, the trustee's investments were cautious and conservative.