Placing folders within folders can be a great way to organize your iPhone’s (iPad’s) home screen. iOS 7 lets you create nested folders by placing a folder inside another folder. Here is how:
Steps:
1.Create a folder with at least two apps. To create folders, tap and hold on any app’s icon, until all the app icons start to shake, then drag one of the apps onto the other.
2.Now select two other apps and create another folder, when the folder appears (immediately after you create this folder before the screen zooms in), tap and hold on the original folder icon (folder your created in step #1),
3.Now the screen will zoom into the folder (that you created in step#2) and you may drag that second folder right into the first folder.
You may repeat this process to create more nested folders and levels.
It looks little complicated. But it is a really simple process. Please see this short vide to fully understand:
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