What will happen to my mutual funds if the banks get nationalized?

You wouldn't have a problem with these. It's only if you actually own Citigroup shares (C).

I don't know the future for citigroup shares and whether or not the bank will be nationalized. The government doesn't intend on nationalizing Citigroup. They would only consider such an option if C couldn't avoid bankruptcy.

Bank of America won't be nationalized. The BOA will be buying back the $45b government stake initiated by the previous government over a 3 year period. Bank of America made profit in 2008 and losses from the Merill Lynch acquisition were covered by $20b of bail out money.

The funds prices would go down if they owned Bank of America or Citigroup shares (or other banks which would suffer too on the assumption that they might be next) but the funds themselves would continue business as usual. To check what your funds own, you can find out at finance.yahoo.com or morningstar.com. On yahoo finance, get a quote for the fund, then click the holdings link. Here's a link for CWICX: http://finance.yahoo.com/q/hl?s=CWICX

If the banks are nationalized you will LOSE any money you have in EQUITIES AND BONDS.. if the banks just go bankrupt, you will lose equities but you may salvage the bonds, depending on what fund you are invested in.