In Android Lollipop you can very easily organize your apps and applications with folders. The organization helps you to find apps faster within categorized folders and also saves time because you have to scroll less in the menus. To create a new folder in Android Lollipop works as follows:
Open from the home screen the app menu and then tap at the top right on the three-point symbol.
Here a small menu will appear, in which you now select "Create Folder". You can now assign a folder name and then add apps on that folder by tapping the plus icon. Select all apps using a hook that you want to add in this folder.
Have you made your choice, then tap at the top right on "Done". You now know how to create folders in the new Android Lollipop 5.0