Dont trade with other parties money 

2) you cannot offer guaranteed returns 

3) if they lose money in trading they will file case against you of cheating 

4)

In India, SEBI regulates the registration of Investment Advisors (IAs) under the SEBI (Investment Advisers) Regulations, 2013. The regulations define an investment advisor as someone who advises about investing in securities or provides research analysis.

Any individual or entity that falls under the definition of an investment advisor must register with SEBI. This includes individuals, partnership firms, LLPs, companies, and any other entity that provides investment advisory services for a fee. Employees and representatives of investment advisory firms who interact with clients and provide advice should also be registered with SEBI.

You cannot trade or involve in financial investments on other people's money/finances, this can be considered as an illegal act.

If there is a loss in the investment and if you are not able to return the investment and the assured profits, the  investors can sue you for recovery of their investment even though you may have entered into any agreement disclaiming the losses. 

However there is no infirmity if you advise them on investment in various aspects.

Investment Advisors help people manage their finances and projects. SEBI registered investment advisors can help them set goals and develop strategies to achieve them. Having an Investment Advisor helps people make informed decisions regarding their finances.

Financial markets and investment instruments are getting more complex by the day. SEBI-Registered Investment Advisors provide expert advice on investment decisions. They also offer various services, including financial planning, investment management, retirement planning, and tax planning

SEBI RIAs are required to provide personalized investment advice to their clients based on their unique requirements like their financial goals, risk tolerance, and investment preferences.

So you may decide based on the situation. 

AIF Category III are funds that invest in hedge funds, funds that trade to make short-term returns or funds which are open-ended for which government provides no incentives or concessions. Category III funds, employ diverse trading strategies to make investments.

Examples of this category are as follows: Hedge Funds. Private Investment in Public Equity Funds.

Following conditions are necessary to be fulfilled for getting registered as AIFs:

• An entity shall be restricted through its MOA & AOA to invite the public to subscribe to its shares.
• A maximum number of investors shall not at any time exceed 1000.
• Trust deed duly registered under Registration Act 1908 shall also be furnished in case of an applicant for AIF registration is registered trust.
• A partnership deed is compulsorily furnished in case the applicant is LLP, and such deed shall be duly registered under the LLP Act 2008.
• Investors of AIF shall be either Indian or Non-Resident Indian.
• The minimum corpus for any AIF must be a minimum of 20 crores.

• Restrictions on the fundraising of AIFs and investments

  There are certain following restrictions on the fundraising of AIFs and investments made by such AIFs:

  • AIFs are allowed to raise funds through Private Placement.
  • AIFs cannot accept an investment of value less than INR 1 Crore from the investor.
  • Not more than 1000 investors are allowed under this fund, with the corpus limit of each scheme shall be INR 20 Crore.

AIF is defined under Regulation 2(1)(b) of the SEBI (Alternative Investment Funds) Regulations, 2012 (“Regulations”). The regulations define AIF as a fund established or incorporated in India in the form of a Limited Liability Partnership (LLP) or company or trust or body corporate which- 

• It is a privately pooled investment vehicle that gathers funds from investors, including Indian investors and foreign investors, to invest it as per a defined investment policy to benefit its investors.

Yes you can do the same but the sources must be known & legitimate source

You should take a license for a broker.  Otherwise you cannot manage other people's money. Only a broker can do so.