Is John Hancock Regional Bank A (FRBAX) a Strong Mutual Fund Pick Right Now?

If you've been stuck searching for Sector - Finance funds, consider John Hancock Regional Bank A (FRBAX) as a possibility. FRBAX bears a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.ObjectiveFRBAX is part of the Sector - Finance section, which boasts an array of other possible selections. Sector - Finance funds offer a stable, diversified approach to investing that focuses on the financial industry, an infamously large, complex, and heavily-regulated space. Funds here can include insurance companies and exchanges, as well as banks and investment giants. Investors should note that interest rates may also impact players in this market.History of Fund/ManagerJohn Hancock is based in Boston, MA, and is the manager of FRBAX. John Hancock Regional Bank A debuted in January of 1992. Since then, FRBAX has accumulated assets of about $593.47 million, according to the most recently available information. Susan Curry is the fund's current manager and has held that role since May of 2006.PerformanceObviously, what investors are looking for in these funds is strong performance relative to their peers. This fund carries a 5-year annualized total return of 6.63%, and is in the bottom third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3 -year annualized total return of 0.29%, which places it in the bottom third during this time-frame.It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. FRBAX's standard deviation over the past three years is 28.43% compared to the category average of 16.5%. The standard deviation of the fund over the past 5 years is 30.49% compared to the category average of 17.76%. This makes the fund more volatile than its peers over the past half-decade.Risk FactorsInvestors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. FRBAX has a 5-year beta of 0.99, which means it is likely to be as volatile as the market average. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. The fund has produced a negative alpha over the past 5 years of -4.51, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.HoldingsInvestigating the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is largely on equities that are traded in the United States.Currently, this mutual fund is holding 81.52% in stocks, and these companies have an average market capitalization of $31.45 billion. This fund's turnover is about 4%, so the fund managers are making fewer trades than its comparable peers.ExpensesFor investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, FRBAX is a load fund. It has an expense ratio of 1.26% compared to the category average of 1.02%. From a cost perspective, FRBAX is actually more expensive than its peers.Investors should also note that the minimum initial investment for the product is $1,000 and that each subsequent investment has no minimum amount.Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.Bottom LineOverall, even with its comparatively weak performance, worse downside risk, and higher fees, John Hancock Regional Bank A ( FRBAX ) has a high Zacks Mutual Fund rank, and therefore looks a good potential choice for investors right now.This could just be the start of your research on FRBAXin the Sector - Finance category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. 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