Value funds are those that tend to trade at prices lower than their fundamentals (i.e. earnings, book value, debt-to-equity). It is common for some investors to invest in value funds for income or yield. However, not all value funds comprise solely of companies that primarily use their earnings to pay dividends. Investors interested in choosing value funds for yield, should be sure to check the mutual fund yield. The mutual fund yield is the dividend payments divided by the value of the mutual fund’s shares.

Meanwhile, mid-cap value mutual funds provide excellent opportunities for investors looking for returns at lesser risk by gaining exposure to stocks that are available at a discounted price. While large caps are normally known for stability and the smaller ones for growth, mid caps offer the best of both the worlds, allowing growth and stability simultaneously.

Below we will share with you 4 top-rated mid-cap value mutual funds . Each has earned a Zacks #1 Rank (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 mid-cap value mutual funds, investors can click here to see the complete list of funds .

MassMutual Select Mid-Cap Value A (MLUAX - MF report) seeks long-term capital appreciation. MLUAX invests a major portion of its assets in equity securities of undervalued mid-capitalization companies. Equity securities include common stocks, preferred stocks, securities convertible into common or preferred stocks, stock futures contracts, stock index futures contracts, rights, and warrants. The MassMutual Select Mid-Cap Value A has a three-year annualized return of almost 6%.

As of December 2015, MLUAX held 168 issues with 1.9% of its assets invested in E Trade Financial Corp

CRM Mid Cap Value Investor (CRMMX - MF report) invests a large portion of its assets in equity securities of domestic and foreign companies with market capitalizations at the time of initial purchase within the range of those in the Russell Midcap Value Index, which are publicly traded on a U.S. securities market. The CRM Mid Cap Value Investor fund has a three-year annualized return of 7.5%.

CRMMX has an expense ratio of 1.05% as compared to the category average of 1.15%.

Sterling Capital Mid Value B (OVEBX - MF report) seeks long-term growth of capital. OVEBX invests a major portion of its assets in equity securities of mid-cap companies. According to advisors, a company with a market capitalization within $1 billion to $30 billion is defined as a mid-cap company. OVEBX predominantly invests in common stocks of both domestic and foreign firms that are traded in the US. The Sterling Capital Mid Value B fund has a three-year annualized return of 8%.

Timothy P. Beyer is the lead portfolio manager since July 2005.

Heartland Select Value (HRSVX - MF report) generally invests in common stocks of companies that are believed to be undervalued compared to their intrinsic value. HRSVX is expected to maintain a portfolio of 40 to 60 securities. HRSVX seeks to achieve capital growth over the long run. The Heartland Select Value fund has a three-year annualized return of 6.3%.

As of December 2015, HRSVX held 52 issues with 4.3% of its assets invested in Quest Diagnostics Inc.