Small-cap blend funds are a type of equity mutual funds which hold in their portfolio a mix of value and growth stocks, where the market capitalization of the stocks are generally lower than $2 billion. Blend funds are also known as “hybrid funds.” Blend funds aim for value appreciation by capital gains. It owes its origin to a graphical representation of a fund’s equity style box.

In addition to diversification, blend funds are great picks for investors looking for a mix of growth and value investment. Meanwhile, small-cap funds are a good choice for investors seeking diversification across different sectors and companies. Investors with a high risk appetite should invest in these funds.

Below we will share with you 4 buy-rated small-cap blend mutual funds . Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all small-cap blend mutual funds, investors can click here to see the complete list of funds .

TIAA-CREF Small-Cap Equity Retail (TCSEX - MF report) seeks favorable return over the long term. TCSEX invests heavily in domestic small cap companies having market capitalizations identical to those included in the Russell 2000 Index. TCSEX primarily invests in small sized companies across different sectors. The TIAA-CREF Small-Cap Equity Retail fund has a three-year annualized return of 7.9%.

TCSEX has an expense ratio of 0.75% compared to a category average of 1.33%.

Fidelity Small Cap Stock (FSLCX - MF report) invests a major portion of its assets in companies having market capitalizations identical to those listed in the Russell 2000 Index or the S&P SmallCap 600 Index. FSLCX uses a “blend” strategy to invest in common stocks of companies throughout the globe. Factors including financial strength and economic condition are considered before investing in a company. The Fidelity Small Cap Stock fund has a three-year annualized return of 8.1%.

Lionel Harris is the fund manager and has managed FSLCX since 2011.

JPMorgan US Small Company A (JTUAX - MF report) seeks total return. JTUAX invests a large portion of its assets in equity securities of small cap U.S. companies. These small cap companies have market capitalization similar to those companies listed in the Russell 2000 Index during the time of purchase. The JPMorgan US Small Company A fund has a three-year annualized return of 7.6%.

As of December 2015, JTUAX held 373 issues, with 1.37% of its assets invested in Take-Two Interactive Software Inc

SSgA Enhanced Small Cap N (SESPX - MF report) invests a major share of its assets in equity securities of small-cap companies having market capitalizations similar to those included in the Russell 2000 Index. SESPX primarily focuses on maximizing total return through investment in small capitalization equity securities. The SSgA Enhanced Small Cap N fund has a three-year annualized return of 6.8%.

SESPX has an expense ratio of 0.75% compared to a category average of 1.23%.