Where to invest £1m to generate 10%+ income with some risk

ex-pat_scot

A couple of suggestions. 
1. You've already "won" the game. You note you have more than enough already coming in.
Why keep playing the game when you have already won? Voluntarily continuing with volatility gets you either (a) downside loss or (b) upside - nothing - merely a larger number on your balance sheet.
To what avail (other than boredom or a desire to tinker) are you thinking of continuing?
2. You will indeed have to do something with the funds.
I suspect the desire to tinker will lead you to increased dealing costs and lower net returns...
I would suggest the sensible approach is either low cost global diversified ETF tracker (eg VRWL) or one of Vanguard LifeStrategy series (VLS100 / VLS80 / etc) - choose the LS to fit your risk appetite.
3. If you are looking for a thrill, possibly with part of your surplus, then you could perhaps designate some of it (10% ?) as "fun money" to gamble / speculate and sate your thirst for investing.
Have a think about which of your pots you dedicate to this.
If you are near LTA, then getting a nice growth in your SIPP would get you a tax headache.
Perhaps your balanced approach might be to have your SIPP investments in low risk areas, and the non SIPP (ISA, cash etc) in high risk. 
That approach would at least optimise your tax approach.

Voyager2002

My suggestion:
Investing could become an interesting hobby, one that enables you to make the odd profit to pay for occasional luxuries. So by all means choose a sum like £1,000 that does not really matter to you and try out some risky investments. It will probably become an exciting game and will draw on your general knowledge about the world, what is happening to the economy, any special interests you might have. Do be aware of one major pitall: it is quite likely that you will do well and wish that you had been playing with a larger sum. In reality you will only learn from your losses, so do NOT scale up until you have experienced real pain from a loss and believe that you have learned from it.

[Deleted User]

Half a million in cash is way too much, fizio.

Unless the cash fell into your lap all at once, I guess a lot of it has been parked for a long time. Unfortunately, you won’t be able to get back the gains you have foregone but it is good that you are now seeking to address the issue. 
Not sure why you rule out individual stocks. Individual stocks will be the bricks of any funds in which you eventually invest. Some, like Baillie Gifford, have delivered excellent growth but the performance is only a proxy for that of the underlying share holdings.

Albermarle

 would suggest the sensible approach is either low cost global diversified ETF tracker (eg VRWL

In the long term this will probable be a good suggestion but in the short & medium term it could be pretty volatile , considering the general advice to the OP is to play safe(ish ) ?

Prism

Just as an example, had you invested £1m in a world index in the spring of 2000 and taken 10% income per year you would have been penny less by 2006. 

fizio

Firstly thanks to everyone for taking the time in providing feedback and its much appreciated. I don't really want to get into the discussion about my personal motivation or how I spend my time etc and was more interested in portfolio mix and asset allocation type discussion. Having read all the comments I am not sure anyone is advising me to invest in anything at all (other than the VRWL - which I am already in). 
I agree that risk means different things to me and my baseline for low risk in the context of this discussion is VRWL and individual shares are the opposite end of the risk spectrum with everything else in between. 
I have been looking into other websites and forums (eg citywide/lemon fool/etc) and found a number of example portfolios of how others have invested in different segments of the global market and it has given me a good understanding which I am using as a basis to build my own mix of funds. 
A good discussion nevertheless and any feedback is useful

michaels

Would you get more utility from increasing your volatility by betting on sport or horses rather than company /sector performance?

Thrugelmir

fizio said:

Having read all the comments I am not sure anyone is advising me to invest in anything at all (other than the VRWL - which I am already in). 

There's a vast investment universe to explore. Opportunities do exist for small investors. Akin to panning for gold. No one is going to present them to you on a plate. You have to do the hard yards by yourself.  Takes time to develop your own style that works. You'll make plenty of mistakes along the way.  Invest in what you understand is one key element to be successful. Having the time to research is therefore a real bonus. 

fizio

Thrugelmir said:

There's a vast investment universe to explore. Opportunities do exist for small investors. Akin to panning for gold. No one is going to present them to you on a plate. You have to do the hard yards by yourself.  Takes time to develop your own style that works. You'll make plenty of mistakes along the way.  Invest in what you understand is one key element to be successful. Having the time to research is therefore a real bonus. 

Yes I get that and have some ideas now on where to start and the direction of travel so will start to build my portfolio.. Talking to friends who are experienced investors has also been very useful.

Thrugelmir

fizio said:

Thrugelmir said:

There's a vast investment universe to explore. Opportunities do exist for small investors. Akin to panning for gold. No one is going to present them to you on a plate. You have to do the hard yards by yourself.  Takes time to develop your own style that works. You'll make plenty of mistakes along the way.  Invest in what you understand is one key element to be successful. Having the time to research is therefore a real bonus. 

Yes I get that and have some ideas now on where to start and the direction of travel so will start to build my portfolio.. Talking to friends who are experienced investors has also been very useful.

Often what you spent a life time doing as a vocation is a good place to start. Helps when you understand business in a certain sector better than most.