Should we create large number of folders within a list?

For a custom list having 50K item it is more convenient for user to create folders to segregate custom list items logically. But if we consider performance, is it recommended to create large number folders of within a custom list?
What are pros and cons of creating folders within a custom list?

Hi SunilKumar,
In a SharePoint list, the folder can also be seen as list item, considering to the large amount of list items existing in your list, the influence of these extra folders
to your site won’t be so apparently.
However, for a better item management, using extra columns for grouping items would be more recommended.
Best regards,
Patrick
Patrick Liang
TechNet Community Support

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