iOS 7.1 came in addition to a number of improvements, bug fixes, and new features like CarPlay. The new version also brought small design changes, but unfortunately Apple also in this update killed a very handy glitch, so that the ability to create nested folders (folders within folders) is no longer possible.
This glitch method might help a lot of organizing your iPhone's home screen or to creating an convenient filing system for your various app categories. luckily is still there a workaround to do that in the iOS 7.1.
Here are the steps to do it:
First you need two apps on your home screen (preferably two that you want to put into a folder) and make sure an existing folder is present on the same screen.
The creating of the new folder begin by putting the app over the other. Once the folder appears tap and hold on the existing first folder and drag it inside of the new folder and release your finger.
Remember this just a glitch we don't expect it to survive another update, we hope Apple will officially implement a feature like this in the future with more possibilities