What is required of a guardian when managing a ward’s assets?

A guardian managing a ward's assets has a fiduciary duty to act in the best interest of the ward. This involves carefully considering the management of these assets to ensure their long-term growth and security. Using risk-reducing strategies and diversifying assets is essential because it spreads out potential risks associated with investments, which can lead to more stable returns over time. This approach helps protect the ward’s financial interests, especially considering that the guardian must be cautious and prudent in all decision-making processes regarding the ward's finances.

Diversification is critical in investment management, as it minimizes the impact that any single asset's poor performance can have on the overall portfolio. Employing risk-reducing strategies means the guardian will likely pursue a balanced mix of assets to achieve a mix of growth and stability, aligning with the fundamental principles of prudent investment practices required by guardianship standards.