I don't quite understand this example given by Mike Haskel. I want to find an example about
$$\operatorname{Hom}_R\left ( M ,\bigoplus_{i\in I} N_{i}\right )\not \cong\bigoplus_{i\in I} \operatorname{Hom}_R\left ( M ,N_{i}\right ).$$
Mike Haskel's example is that:
It's not true when $I$ is infinite, due exactly to the problem you encounter. Consider the case where $R = \mathbb{R}$, $M$ is an infinite dimensional vector space, and each $N_i$ is $\mathbb{R}$, with $I$ infinite. Convince yourself that $\operatorname{Hom}(M,\bigoplus_i N_i)$ corresponds to infinite matrices whose columns each have finitely many nonzero entries, while $\bigoplus_i \operatorname{Hom}(M,N_i)$ corresponds to infinite matrices with only a finite number of nonzero rows.
It's not quite clear to me why "$\bigoplus_i \operatorname{Hom}(M,N_i)$ corresponds to infinite matrices with only a finite number of nonzero rows".
I don't know how to write a formal rigorous proof that $\operatorname{Hom}_R\left ( M ,\bigoplus_{i\in I} N_{i}\right )\not \cong\bigoplus_{i\in I} \operatorname{Hom}_R\left ( M ,N_{i}\right )$ in this case.