Prudent Man Rule Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Prudent Man Rule, written in plain English, along with examples of how it is used.

What is Prudent Man Rule?

It is a rule which directs the trustees or fund managers to invest the funds in the securities in which any level headed, prudent man who desires to make reasonable profit from his/her investment, will be intersted in.