Sharepoint Document Set vs Folder

Document Set
Additional Information on grouped content
Ability to specific default metadata
Synchronization of Metadata
Versioning of Individual Documents
Running workflows on multiple items with SharePoint Designer
Provisioning of Default Content
For detailed difference check

http://www.sharepointanalysthq.com/2012/06/documents-sets-vs-folders-in-sharepoint-2010/

SharePoint2013 : Folders inside the document set

https://sergeluca.wordpress.com/2014/06/04/sharepoint-2013-and-folders-in-document-set-why-i-needed-it/

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