Al Filo Del Terror (Also known as "On The Edge of Terror") is about Armando "El Griego" Sanchez, he was once a great Ventriloquist but for the past 10 years or so, he's failed to be funny and his TV show is losing viewers. El Griego is also not doing well at home since he neglects and yells at his cute daughter Karlita! After doing another failing show on TV, he blames his failure on his puppet "Smiley" and decides to destroy him. Late at night, El Griego gets his axe and chops Smiley's head off along with it's little hands and feet, Karlita gets upset but she hopes he'll return someday because apparently she believes in puppet reincarnation; So after that we just see El Griego struggling on TV, has visions of the clowns talking shit in the audience, his TV Workout girlfriend being cruel to him and Karlita being sad.
In the middle of the movie.. El Griego decides to turn his daughter into Smiley making her act like a puppet and talk like a puppet, it's a scam but he doesn't care, he knows that doing this will make him rich and famous, so he trains Karlita and blackmails his Brother-in-law to become part of the scam, months go by and El Griego is now rich and famous, his TV show is popular again and he has all the money in the world which impresses his lame girlfriend. As the movie comes to an end, we see El Griego go very mad and kill people just to keep his secret hidden and he also believes he'll rule the world with "Smiley" as long as the secret is never revealed.
Al Filo Del Terror is an interesting early 90's Mexican Horror flick, I'm pretty sure this was the inspiration for Herencia Diabolica since this is probably the first movie in Mexico to use "midget" actors to play killer clown dolls, another great thing about the movie is that it mainly focuses on the main character and his madness that grows bigger and bigger as the movie goes on. Check it out. 7/10.