iOS 7 allows you to create nested folders. It’s not really something that the team at Cupertino intended, but it happened. Here’s how to exploit it.
You can combine any two folders by doing the following.
1) Put your finger on the folder you want to put inside another folder.
2) The second it becomes darker, hit the Home Button twice to bring up the multitask menu. The double tap should be immediately after you touch the folder. Do it before the icons start to jiggle.
3) Now that the multitask menu is open, tap on the Home Screen to bring it up. You should notice that the folder you originally selected is still darkened out. Leave it alone for now.
4) This time, tap the folder that will hold folder number one in. This can be any other folder.
5) iOS will zoom in and you will see your darkened folder floating over the folder you just chose.
6) Hit the Home Button and you will have a folder within a folder. (The first folder you tapped will be insider the one you chose in step 4)
7) To reverse this, just hold down the embedded folder and drag it out as you would any other app.