How do I start investing in the stock market? I am new to the investing business, just finished my graduation last year and my family has given me Rs 1 lakh to invest in the markets. What are the risks associated with my situation?

Ans: Risks associated with investing in the stock market include market volatility, potential loss of capital, and uncertainty. With only a year after your graduation and without much experience in investing, avoid taking big bets lest you lose your entire capital in this experiment. The risk involves potential losses since the market can be unpredictable. It's crucial to diversify your investments, avoid putting all your money into a single stock, and consider seeking advice from financial advisors to minimise risks.

Here's a basic guide:

1. Educate Yourself: Learn about how the stock market works. There are many online resources, books, and courses available.

2. Set Clear Goals: Determine your investment goals, whether it's for long-term wealth growth, retirement, or something else.

3. Create a Budget and Emergency Fund: Ensure you have an emergency fund set aside before investing. Don't invest money you might need in the short term.

4. Choose an Investing Strategy: Decide between individual stocks, mutual funds, ETFs, or other investment vehicles. Consider diversification to spread risk.

5. Open a Demat Account: Find a reputable brokerage and open a Demat account to start trading.

6. Start Small: Begin with a small amount to test the waters and gradually increase your investments as you gain more confidence.

Hope that helps.

Once again remind yourself stock market can be quite handful for someone like you who has absolutely no experience of investing.

At the cost of sounding too cautious, I would advice you to return the money back to your family, learn basics of how the stock market works, how companies and stocks are analysed, valued, and may be a year or two later you can think about entering the market with the help of a trustworthy and credible financial advisor to guide you.