With all the new features in ios 5 we have been posting about, one such great feature which allows you to filter your photos in camera roll and add them to newly created albums or old existing albums. This way you can create photo albums of different moments of life by creating a specific albums with some name related the the moment, and all the photos you add to photo album will not get deleted from camera roll pictures so the photos will show up in both the photos album and camera roll on iphone.
Below is the procedure explained on how to create photo albums on iphone and add photos into them.
Launch the photos app on iphone, First tap the rectangle with arrow coming out to select all the photos that you would like to add to the album and then tap the button on the bottom of the screen which says add to
Now select the button which says add to new album as shown in the image below.
Now give the name to your newly created album as shown in the image below.