A target outcome fund mimics an option in an underlying risky asset by holding a mix of the risky asset and a low-risk asset. The relative amount of the risky asset and the low risk asset held by the fund is periodically (e.g., monthly) rebalanced based on the fund's performance. If the fund over-performs, the target outcome is increased accordingly to prevent the fund becoming overly invested in the risky asset, thereby protecting gains made.