The investments made in a foreign country are made in foreign currency. Therefore, there is a currency exchange risk. For example, in the case of the depreciating Indian rupee against the dollar, the depreciation in the rupee improves our returns in the international fund which is US Focused. But if we reverse the situation and consider the appreciation of Indian rupee against the dollar, we would end up making a loss. It is very difficult for laymen to predict the currency movements and it should be done by experts. Hence, if one is investing only to hedge against the depreciation of the Indian Rupee, it would not be a great reason to do it.