The Uniform Prudent Investor Act (UPIA) is a law that sets out the rules that trustees must follow when making investments on behalf of others, an updated version of the prudent person rule.
The prudent person rule stated that the trust’s fiduciary must invest the assets of the trust, as the “prudent person” would invest his own assets.
UPIA requires trustees to consider a diversified portfolio approach that follows modern portfolio theory and the overall return approach.