What would be the better schema to represent this data?
Without knowing complete and exact requirements, we cannot design a complete data model. Based on my understanding from question, the following rules can be derived.

Each folder must have a folder type
Each folder type may contain more than one folder
Each folder must belongs to an owner
Each owner may contain more than one folder
Each owner must belongs to an owner type (either individual or team)
Each record must belongs to a folder
Each folder may contain more than one records

Here, I am not clear about about few things, such as:

Whether a record can be a part of more than one folder
Whether a folder belongs to both individual and team
Whether folder type other meaning such as archival or sales or something else
Whether is there any chance of adding more folder type or owner type (group, external, vendor, client, etc)

I am designed the below model, hoping future changes are adoptable without much changes in the design.

My suggestion is to start from conceptual data model, regardless of the size of the project. More questioned you answered on this process, more better the application will be.
I hope this answer will be helpful. Thanks!