I am sure that if you are invested in the market then the last month must be really worrying for you. While the large cap index has lost nearly 25% in the last one month, the small cap index has lost close to 29%. In fact, the correction would be much sharper in most counters and that could be really nerve racking. Practically, the value of a stock never goes down to zero so even your fund value cannot go down to zero but in the past we have seen fund NAVs correct by 50-60%. In such cases, the fund manager expertise comes in handy. In fact, this is the right time to be buying small cap and mid cap mutual funds. Ideally, you should stick to mid cap funds and better still you can go for a multi cap fund which includes all cap stocks.