From Tools menu > click Address Book to open your Address Book.
In the Show Names from the list, click Contacts.
On the File menu > click New Entry OR click the New Entry button on the toolbar.
Under Select the entry type > click New Distribution List.
Under Put this Entry, click In The Contacts. This selection determines where your new distribution list is saved. This is the default location.
Your new distribution list is now set to be saved in the Contacts folder.