Balanced funds are it.
They typically mix stocks and bonds in a 60-40 proportion, offering a portfolio that tends to be significantly less volatile than a pure stock play. That's because the bond component reacts differently to economic events, providing soothing relief from profit short-falls, recessions, and those occasional exogenous shocks. Balanced funds offer a double dose of diversification. The key to properly mixing balanced funds into your overall portfolio is to know something about the stock strategy of the manager, and then to compare his or her fund with your other stock funds. Others mix blue-chip stocks and riskier bonds.