Do oversized sweaters suit formal or casual outfits better?

I was recently contemplating oversized sweaters of men, and the question came to my mind whether these suit suitably to formal or informal attire. I thought they would always be worn casually but on trying some combinations I realized that they can be styled in many ways.

Personally, I have observed that the oversized sweaters just fit well with casual clothes. They can be worn with jeans, chinos, or sneakers to give an effortless look of being relaxed and comfortable. The casual fit provides a contemporary streetwear feel which is perfect to wear on a daily basis.

But when searching, I also came across the fact that other individuals wear the oversized sweaters in semi-formal styles by wearing them with tailored trousers or even over collared shirts. Although trying out various fashionable selections on Alibaba, I noticed that many oversized sweater designs were in both casual and somewhat refined styles.

In general, oversized sweaters are not the best in formal outfits but, when properly paired and layered, can be used in smart-casual outfits.