Investors who seek diversification and less volatility often choose balanced funds because they provide income for a retirement portfolio.

While these funds are convenient for novice investors to diversify across stocks and bonds in one fund even if there are systematic withdrawals, they are not for everyone, says Jodie Gunzberg, chief investment strategist at Graystone Consulting, a Morgan Stanley business.

Despite possibly large cash and bond allocations that are typically cheap, balanced funds often charge higher equity fund-like fees, she says. Balanced funds can be a good way for investors to add diversification since these funds allocate 60% stocks and 40% bonds within the fund, says Stuart Michelson, a finance professor at Stetson University.

Click through the slideshow to see seven balanced funds to consider.