Do small cap mutual funds ever crash and never recover?

I was thinking of getting Nippon Small Cap Fund, good returns, has been trading for a while.
I know small caps are much more likely to fail than large caps, but for a big name AMC with many small caps does it really matter? Even NIFTY MFs have bad years, but they still recover.

Will Small Cap MFs from big AMCs do the same? Or is there chance for a fatal crash that kills the MF. Has it ever happened?


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buddy - why you are telling like that - i invested heavily

Hard to say, but mistakes made in bull markets can hurt if fatal.
Not the same, but there used to be a JM core 11 fund that got carried away by bull markets in 2007 or so and could never recover from the crash relatively vs indices.

Now this is a focused fund, so mistakes can hurt more. But risk is always there even if small.

i wouldn’t worry too much but i would also not put 100% in small caps/microcaps anyway.